Theranos investors who pledge not to sue get Elizabeth Holmes’ shares for free

After scandals and lawsuits, hobbling company is said to have $150 million left.

Theranos CEO and founder Elizabeth Holmes is planning to give up some of her personal shares to investors who pledge not to sue the disgraced blood-testing company, the Wall Street Journal reports.

The deals would only involve investors from the last round of funding, which ended in 2015 and brought in more than $600 million. These investors include the family of US Education Secretary Betsy DeVos, the family behind Walmart stores, and John Elkann, who controls Fiat Chrysler Automobiles. Investors could get about two free shares of the company for every share they bought.

The deals would also mean that Holmes could lose her majority stake in Theranos.

“This is an affirmative development for the company, providing a path forward in partnership with employees, investors, and other stakeholders,” Theranos director Daniel Warmenhoven told the WSJ. “Elizabeth elected to contribute her own equity to protect any dilution of shares held by other parties.”

He added that she showed “a level of selflessness and grace reflecting her commitment to the company’s success.”

Theranos, once a dazzling biotech start-up valued at $9 billion amid promises that it could revolutionize the blood-testing industry, appears to be nearing rock bottom. Federal regulators shut down the company’s labs and banned Holmes from the industry after problems with its technology and the company’s practices were revealed. Theranos is appealing the sanctions.

The Securities and Exchange Commission and Justice Department have opened investigations into the company, as well.